Cummins (NYSE:CMI) Cut to Hold at StockNews.com

StockNews.com lowered shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a report published on Tuesday.

Several other research firms have also recently issued reports on CMI. Bank of America upgraded Cummins from an “underperform” rating to a “neutral” rating and raised their price target for the company from $354.00 to $358.00 in a report on Tuesday, January 14th. Citigroup dropped their price target on shares of Cummins from $435.00 to $430.00 and set a “buy” rating for the company in a research note on Tuesday, January 14th. JPMorgan Chase & Co. lowered their target price on shares of Cummins from $420.00 to $375.00 and set a “neutral” rating for the company in a report on Tuesday, March 18th. Robert W. Baird lifted their price objective on Cummins from $395.00 to $407.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 5th. Finally, Jefferies Financial Group increased their target price on Cummins from $410.00 to $435.00 and gave the company a “buy” rating in a research note on Friday, December 6th. Nine investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $389.50.

Cummins Price Performance

Shares of CMI stock opened at $323.93 on Tuesday. Cummins has a 52 week low of $261.51 and a 52 week high of $387.90. The stock has a market capitalization of $44.53 billion, a PE ratio of 11.50, a PEG ratio of 2.19 and a beta of 1.01. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.80 and a current ratio of 1.31. The stock’s fifty day moving average is $353.22 and its 200-day moving average is $347.93.

Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, February 4th. The company reported $5.16 EPS for the quarter, beating the consensus estimate of $4.70 by $0.46. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The business had revenue of $8.45 billion for the quarter, compared to analysts’ expectations of $8.06 billion. During the same period in the prior year, the firm earned $4.14 earnings per share. Cummins’s revenue was down 1.1% compared to the same quarter last year. Equities research analysts expect that Cummins will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 6th. Stockholders of record on Friday, February 21st were given a $1.82 dividend. This represents a $7.28 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date was Friday, February 21st. Cummins’s dividend payout ratio is presently 25.84%.

Institutional Investors Weigh In On Cummins

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Chancellor Financial Group WB LP bought a new position in Cummins in the fourth quarter valued at approximately $1,275,000. 111 Capital bought a new position in shares of Cummins in the 4th quarter valued at about $474,000. Wealth Enhancement Advisory Services LLC increased its stake in shares of Cummins by 34.8% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 23,397 shares of the company’s stock worth $8,156,000 after purchasing an additional 6,042 shares during the last quarter. Siemens Fonds Invest GmbH raised its holdings in shares of Cummins by 9.9% in the 4th quarter. Siemens Fonds Invest GmbH now owns 4,433 shares of the company’s stock valued at $1,545,000 after purchasing an additional 398 shares during the period. Finally, Cim LLC acquired a new stake in Cummins in the 4th quarter valued at about $1,532,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.